Steel Dynamics Inc. (NASDAQ:STLD)

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Steel Dynamics Inc., adjusted total assets

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Total assets	12,531,234)	9,265,562)	8,275,765)	7,703,563)	6,855,732)
Adjustments
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	73,061)	47,100)
Add: Allowances for credit losses	6,161)	8,209)	15,867)	17,495)	15,036)
After Adjustment
Adjusted total assets	12,537,395)	9,273,771)	8,291,632)	7,794,119)	6,917,868)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ Operating lease right-of-use asset (before adoption of FASB Topic 842). See details »

An analysis of the asset base between 2017 and 2021 reveals a consistent and accelerating upward trend in both total and adjusted total assets. The total asset value grew from 6,855,732 thousand US dollars in 2017 to 12,531,234 thousand US dollars by the end of 2021, representing a substantial expansion of the balance sheet over the five-year period.

Asset Growth Trajectory: A steady increase in assets is observed from 2017 through 2020, with annual growth remaining relatively stable. However, a significant acceleration occurred in 2021, where total assets increased by approximately 35.2% compared to the previous year, indicating a period of aggressive expansion or significant capital investment.
Analysis of Asset Adjustments: The variance between total assets and adjusted total assets shows a marked decline over the observed period. In 2017, the adjustment amounted to 62,136 thousand US dollars, and peaked in absolute terms in 2018 at 90,556 thousand US dollars. From 2019 onward, this gap narrowed significantly, falling to only 6,161 thousand US dollars by 2021.
Convergence of Reported and Adjusted Values: A trend of convergence is evident as the percentage difference between total assets and adjusted total assets diminishes. While the adjustment represented approximately 0.91% of total assets in 2017, it decreased to approximately 0.05% by 2021, suggesting that the factors requiring adjustment have become negligible relative to the overall scale of the asset base.

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Steel Dynamics Inc., adjusted total liabilities

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Total liabilities	6,211,063)	4,917,336)	4,210,910)	3,816,334)	3,549,424)
Adjustments
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	73,061)	47,100)
Less: Deferred tax liabilities²	854,905)	536,288)	484,169)	435,838)	305,949)
After Adjustment
Adjusted total liabilities	5,356,158)	4,381,048)	3,726,741)	3,453,557)	3,290,575)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Deferred tax liabilities. See details »

Between December 31, 2017, and December 31, 2021, a consistent upward trajectory is observed in both total and adjusted liabilities. While both metrics grew steadily over the five-year period, the rate of increase accelerated significantly in the final two years, peaking in 2021.

Total Liabilities Growth Trend: Total liabilities increased from US$ 3,549,424 thousand in 2017 to US$ 6,211,063 thousand in 2021. This represents an overall increase of approximately 75% over the period. The growth was relatively moderate between 2017 and 2019, followed by a more pronounced escalation in 2020 and 2021, with the latter year showing the most substantial jump of approximately 26%.
Adjusted Total Liabilities Performance: Adjusted total liabilities mirrored the growth pattern of total liabilities, rising from US$ 3,290,575 thousand in 2017 to US$ 5,356,158 thousand in 2021. The adjusted figures show a similar acceleration in growth during the 2020-2021 window, indicating that the underlying drivers of liability growth affected both the reported and adjusted balances.
Analysis of Liability Adjustments: A widening divergence is observed between the total and adjusted liability figures. The absolute difference between the two metrics grew from US$ 258,849 thousand in 2017 to US$ 854,905 thousand in 2021. This indicates that the adjustments applied to the total liabilities have increased in magnitude over time, representing a larger portion of the total liability structure by the end of the period.

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Steel Dynamics Inc., adjusted total Steel Dynamics, Inc. equity

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Total Steel Dynamics, Inc. equity	6,304,641)	4,345,164)	4,075,834)	3,935,071)	3,351,574)
Adjustments
Less: Net deferred tax asset (liability)¹	(854,905)	(536,288)	(484,169)	(435,838)	(305,949)
Add: Allowances for credit losses	6,161)	8,209)	15,867)	17,495)	15,036)
Add: Redeemable noncontrolling interests	211,414)	158,614)	143,614)	111,240)	111,240)
Add: Noncontrolling interests	(195,884)	(155,552)	(154,593)	(159,082)	(156,506)
After Adjustment
Adjusted total equity	7,181,237)	4,892,723)	4,564,891)	4,340,562)	3,627,293)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ Net deferred tax asset (liability). See details »

A consistent upward trajectory in equity is observed from 2017 through 2021. Both the reported total equity and the adjusted total equity grew steadily over the five-year period, with a significant acceleration in growth occurring between 2020 and 2021.

Growth Trend of Total Equity: Total equity increased from 3,351,574 thousand USD in 2017 to 6,304,641 thousand USD in 2021. This represents a cumulative growth of approximately 88%. The growth was relatively stable between 2018 and 2020, followed by a sharp increase of approximately 45% in the final year.
Analysis of Adjusted Total Equity: Adjusted total equity followed a parallel growth pattern, rising from 3,627,293 thousand USD in 2017 to 7,181,237 thousand USD in 2021. The total growth for this metric was approximately 98%, with the most substantial expansion occurring in 2021.
Equity Adjustment Variance: A persistent positive variance exists between the total equity and the adjusted total equity throughout the period. This gap widened consistently, starting at 275,719 thousand USD in 2017 and expanding to 876,596 thousand USD by 2021. The increasing magnitude of this adjustment suggests a growing divergence between the reported book value and the adjusted equity valuation.

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Steel Dynamics Inc., adjusted capitalization table

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Current maturities of long-term debt	97,174)	86,894)	89,356)	24,234)	28,795)
Long-term debt, excluding current maturities	3,008,702)	3,015,782)	2,644,988)	2,352,489)	2,353,145)
Total reported debt	3,105,876)	3,102,676)	2,734,344)	2,376,723)	2,381,940)
Total Steel Dynamics, Inc. equity	6,304,641)	4,345,164)	4,075,834)	3,935,071)	3,351,574)
Total reported capital	9,410,517)	7,447,840)	6,810,178)	6,311,794)	5,733,514)
Adjustments to Debt
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	73,061)	47,100)
Add: Lease obligations under operating leases (included in Accrued liabilities)²	17,822)	17,702)	17,532)	—)	—)
Add: Lease obligations under operating leases (included in Other liabilities, noncurrent)³	82,252)	72,614)	57,897)	—)	—)
Adjusted total debt	3,205,950)	3,192,992)	2,809,773)	2,449,784)	2,429,040)
Adjustments to Equity
Less: Net deferred tax asset (liability)⁴	(854,905)	(536,288)	(484,169)	(435,838)	(305,949)
Add: Allowances for credit losses	6,161)	8,209)	15,867)	17,495)	15,036)
Add: Redeemable noncontrolling interests	211,414)	158,614)	143,614)	111,240)	111,240)
Add: Noncontrolling interests	(195,884)	(155,552)	(154,593)	(159,082)	(156,506)
Adjusted total equity	7,181,237)	4,892,723)	4,564,891)	4,340,562)	3,627,293)
After Adjustment
Adjusted total capital	10,387,187)	8,085,715)	7,374,664)	6,790,346)	6,056,333)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Lease obligations under operating leases (included in Accrued liabilities). See details »

³ Lease obligations under operating leases (included in Other liabilities, noncurrent). See details »

⁴ Net deferred tax asset (liability). See details »

The financial data indicates a consistent expansion of the company's capital base between 2017 and 2021. Both reported and adjusted figures show a steady upward trajectory in debt and equity, contributing to a significant increase in total capitalization over the five-year period.

Debt Trends and Adjustments: Total reported debt grew from 2.38 billion in 2017 to 3.11 billion by 2021. Adjusted total debt maintained a parallel growth pattern, consistently remaining higher than the reported figures. This suggests the inclusion of additional liabilities, such as lease obligations or other off-balance sheet items, which increased from an adjustment of approximately 47 million in 2017 to 100 million in 2021.
Equity Growth Analysis: A strong upward trend in equity is evident. Reported equity increased from 3.35 billion in 2017 to 6.30 billion in 2021, with a particularly sharp acceleration between 2020 and 2021. Adjusted equity followed this trend, remaining consistently higher than reported equity, indicating a positive adjustment to the equity base that grew from 275 million in 2017 to 877 million in 2021.
Total Capitalization Patterns: Total reported capital rose from 5.73 billion in 2017 to 9.41 billion in 2021. When analyzing the adjusted total capital, the growth is even more pronounced, rising from 6.06 billion to 10.39 billion. The variance between reported and adjusted total capital widened progressively over the period, reflecting larger cumulative adjustments to the capitalization table as the company scaled.
Capital Structure Evolution: The rate of equity growth outpaced the rate of debt accumulation. While adjusted total debt increased by approximately 32% over the period, adjusted total equity grew by approximately 98%. This shift indicates a strengthening of the solvency position and a reduction in the relative reliance on debt to fund the capital base.

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Steel Dynamics Inc., adjusted net income attributable to Steel Dynamics, Inc.

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Net income attributable to Steel Dynamics, Inc.	3,214,066)	550,822)	671,103)	1,258,379)	812,741)
Adjustments
Add: Deferred income tax expense (benefit)¹	318,617)	45,736)	48,331)	59,243)	(139,948)
Add: Increase (decrease) in allowances for credit losses	(2,048)	1,822)	(1,628)	2,459)	623)
Add: Other comprehensive income (loss)	(3,993)	1,909)	(308)	301)	—)
Add: Comprehensive income (loss), net of tax, attributable to noncontrolling interest	32,748)	20,006)	6,797)	(2,574)	(6,945)
After Adjustment
Adjusted net income	3,559,390)	620,295)	724,295)	1,317,808)	666,471)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ Deferred income tax expense (benefit). See details »

Financial performance from 2017 to 2021 is characterized by moderate volatility followed by a substantial surge in profitability. Both reported net income and adjusted net income followed a synchronized trajectory, experiencing a peak in 2018, a contraction through 2020, and a significant expansion in 2021.

Reported Net Income Trends: Net income attributable to the company grew from 812,741 thousand US dollars in 2017 to 1,258,379 thousand US dollars in 2018. This was followed by a downward trend, with figures falling to 671,103 thousand US dollars in 2019 and 550,822 thousand US dollars in 2020. The period concluded with a sharp increase to 3,214,066 thousand US dollars in 2021, representing the highest earnings level in the analyzed timeframe.
Adjusted Net Income Analysis: Adjusted net income exhibited a similar pattern, rising to 1,317,808 thousand US dollars in 2018 and declining to 620,295 thousand US dollars by 2020. In 2021, adjusted net income surged to 3,559,390 thousand US dollars, mirroring the growth seen in reported figures but at a higher absolute magnitude.
Income Adjustments and Variances: The relationship between reported and adjusted net income shifted over the observed period. In 2017, reported net income exceeded adjusted net income by 146,270 thousand US dollars. Conversely, from 2018 through 2021, adjusted net income remained consistently higher than reported net income. This positive variance expanded significantly in 2021, reaching a differential of 345,324 thousand US dollars, indicating a substantial increase in the impact of adjustments during the final year.

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